How long does a boarding house project take start to completion?
From purchase (settlement) of the land to completion (handover and approval to rent to multiple tenants) takes approximately 8-9 months.
How much do boarding house project cost?
It varies depending on the design (single or double level), land location (distance from CBD), slope, etc. All of our projects are custom designed to maximise your returns.
Generally the TDC (total development costs; Land, Design, Approvals, Build) varies from 780k to 850k. However some clients opt for extras such as Solar Panels and Room Furnishing to help with utilities and speed up tenant occupancy.
Where can I do these type of projects? Can I do them in my home state?
While boarding houses exist under different names in different states, the information and case studies we've provided are exclusively for Brisbane City Council boarding houses. While they can be done in other states, the returns are usually much lower and the capital required three to five folds compared to Brisbane. The approval process can take up to 2 years which is why we always recommend our clients stick to where we've proven it works.
Are these rentals just for students? Can they be rented to couples or families?
No, we've found most of our tenants are workers in the 40-55 age bracket. While we are open to student tenants, we have found these type of accomodations are more desirable to working adults.
How long does it take a room to rent?
There is a huge undersupply in most Australian cities for affordable, clean, self contained accomodations like we are providing. This means there is a huge demand and rooms are generally all rented out within 2-3 weeks upon being advertised.
How does the lease work? Is there a bond?
Just like a normal lease. Each tenant/room will have a seperate industry standard rental agreement with the same terms as renting out any house, unit or apartment.
We only accept 6 and 12 month lease contracts.
Do tenants share facilities?
All tenants will have access to the common kitchen area and laundry however, all rooms have their own private bathroom and cooking space and tend to avoid the common kitchen.
Is this legal and insurable?
Yes, this is completely legal and insurable. Our boarding house projects are approved upon completion for multiple tenancy (1b) and adhere to fire safety standards and we can recommend insurers that understand the nature of the boarding houses and will cover them for both building and landlord cover. The key is transparency and compliance, non-compliance means non-coverage.
Do I need special financing or is residential financing fine?
Generally with developments built to generate income such as shops, warehouses, boarding houses require commercial financing which means higher interest and lower loan amount (higher capital required). Our projects can be complete with residential financing.
How does cleaning and maintenance work?
We recommend a cleaner is contracted to visit the property once a month to clean the common areas. If tenants would like their private room cleaned they can for a fee.
Can I select any real estate agent to manage these rentals?
Yes, however we highly recommend clients engage a property manager that specialise in rental of multiple tenancy accomodation and are familiar with the rules and regulations to ensure compliance.
Who pays for the utilities for these boarding houses?
The private studios are usually advertised to include water, power and internet. We've found the rent more than covers these utilities and measures such as timed air conditioners can reduce excessive power usage.
What is security like for the tenants?
Entrance to the boarding house is through a digital keylock which is shared with all the tenants. Each tenant will have an individual security pin for their own rooms.